ABSTRACT
Throughout the book we have emphasized the importance of cash flow to all businesses, not least because running out of cash can spell total disaster. It is vitally important, therefore, that any business plan includes an adequate evaluation of the financing required to achieve the plan’s objectives and that proper consideration is given to the ability of the company to generate this finance. An inability to raise the necessary finance could be a major constraint on the implementation of the plan. Again the different time scales of long-range plans and budgets can be significant in terms of the company’s ability to remove any such financing constraints. In the longer term the business may be able to raise additional funds to pay for planned investments, whereas in the budget period the existing levels of available finance may be a restriction on the implementation of any rapid growth plans.
